The primary laws that govern the disclosures to shareholders and the marketplace include the Securities Act of 1933 and the Securities Exchange Act of 1934 and the rules adopted by the Securities and Exchange Commission (the “SEC”). These laws have come subject to scrutiny in the Camping World Holdings, Inc. who suffered financial losses in excess of $100,000 due to a failure to disclose. Some of their executives have been charged with failing to disclose material information during the Class Period, violating federal securities laws.
Generally speaking, causes of action have been interpreted by the federal courts to specifically set forth in the statutes and to address claims brought as class actions. These types of claims are often brought forward and against the corporation, its directors and officers, purchasers and sellers of securities, persons otherwise having a duty to investors who participate in the alleged disclosure violation. Sometimes accountants and underwriters and persons required to make public filings with the SEC. The history behind it is entrenched in common law notions of disclosure claims such as fraud and negligent misrepresentation. Continue reading